Yes Bank has joined the number of Indian banks that have jumped onto blockchain bandwagon after announcing the effectuation of a multi-node blockchain that will help automate and digitize vendor-financing solutions for Bajaj Electricals.

To develop the blockchain Yes Bank, the fifth leading private sector bank in India, obtained technology from the Linux Foundation-led open-source blockchain project, Hyperledger. Also, the bank informed that they did the effectuation on a blockchain-based smart contract that Fintech startup Cateina Technologies wrote to deliver vender financing solutions for Bajaj Electricals, the major Indian electrical manufacturer.
Bajaj Electricals will digitize all its business interactions including discounts and funds disbursal over the blockchain to allow faster and more efficient record keeping and to increase transparency. The Yes Banks’ client, Bajaj Electricals, will be observing automatic debits from its account at the Yes Bank as part of the automated blockchain transaction.

The bull discounting process cycle will reduce from four days, owning to the manual intervention and transit, to about real-time. That is according to a press release from Yes Bank.
According to Rana Kapoor, the CEO at Yes Bank, the bank is just getting started and they see the Blockchain matched with IBMs Cognitive solution on the Cloud platform will have a great impact on the global Transaction Banking space as the Financial Supply Chain will be more robust, secure, and seamlessly connected. It will also offer great customer experience.

IBM, the bank’s technology partner highly facilitated the blockchain implementation. IBM hosted the blockchain over their Cloud Platform. Also, Yes Bank leveraged cloud-based cognitive service of IBMs Watson Conversation to help in enhancing the participant’s user experience including the vendor, bank and borrowers in the blockchain.

According to Bajaj director, Shekhar Bajaj, the blockchain is the solution to digitizing supply chain financing. The director said that the blockchain would help in making timely vendor payment through the vendor financing from the Yes Bank without using physical documents and without manual interventions. Bajaj said that the system would enable them and their vendor to track the status of transactions on real-time basis.
The Yes Bank block chain implementation has occurred at a time when some other similarly notable efforts are beginning to take form in the country.

IBM collaborated with Indian Conglomerate Mahindra to come up with a supply chain financial solution for the small and medium-sized enterprises in the country.

Microsoft, a tech giant, has also launched the Azure Blockchain as an Indian customers’ service toolkit. The company launched it in December 2016 after they announced a possible partnership with KPMG that will help push the blockchain adoption in India.